Tax Commission denies $31 million refund to Caesars Entertainment

By Cy Ryan, Las Vegas Sun

CARSON CITY — The Nevada Tax Commission has denied the petition of Caesars Entertainment for a refund of $31 million paid on complimentary meals for gamblers and employees.

The $31 million is a tentative figure as the commission will decide next month if the state is barred in retaining part of the amount by the statute of limitations.

After an extended hearing Monday, Commissioner David Turner said the decision of the administrative law judge should be upheld, rejecting the petition of Caesars.

Commission Chairman Bob Barengo indicated an appeal to the court would probably be made. After the decision, he told Caesars lawyer Norman Azevedo, “I understand you will want to appeal.” Azevedo declined comment after the hearing.

The Nevada Supreme Court in 2008 said the state could not impose the use tax on the free meals provided by casinos to players. But it said the sales tax could be imposed.

This has opened a controversy, and the first payments of the sales tax are due June 1.

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